The United States has decided to increase tariffs on steel and aluminum imports, which will affect all its trade partners, including Mexico. The Trump administration has indicated that these tariffs, set at 25 percent, will come into effect without exceptions or exemptions. This measure will add to the 25 percent tariffs already implemented since March 4, meaning a total increase to 50 percent.
According to an analysis by the Mexican Institute for Competitiveness (IMCO), exports of products affected by these tariffs could exceed $20 billion, representing about 4.7 percent of Mexican exports and more than 1.5 percent of the projected GDP for 2024.
IMCO warned that the imposition of tariffs could severely impact a wide range of products, including auto parts, household appliances, and electronics, which are vital for key industries in at least eleven Mexican states. This scenario could affect the operation and reduce the efficiency of these industries.
Rodolfo Ostolaza, an economist at Citibanamex, explained that these measures will directly affect two groups of Mexican exports, representing a high percentage of the total exports in those categories during 2024. These groups include products that contain steel or aluminum, even if they are not specifically classified in the mentioned chapters. This reflects a low level of compliance with the trade agreement in these sectors.
Gabriela Siller, head of analysis at Banco Base, highlighted that only a small proportion of imports are conducted under the USMCA, suggesting a breach of the agreement. In the case of Mexican exports, the proportion is significantly higher for the United States than for Canada.
In light of the impending implementation of tariffs, the Mexican government, led by Secretary of Economy Marcelo Ebrard, has sought a last-minute agreement with the United States to avoid the imposition of these levies. It is estimated that the scope of the tariffs could affect a significant range of products, raising concerns across various sectors of the Mexican economy.
